I'm not sure if this is the correct forum for this type of topic, but I wanted to give a public shout-out to iFunding for our awesome experience over the last 10 days for our 1002 South Center equity raise. They have tinkered with their model based on feedback from both developers and investors and I was delighted with our most recent experience with them. Here are some bullet points that stand out:
- Raise was successful - $365k in 10 days
- Alignment in our deal taking a promote in lieu of fees
- Several other developers I know that I consider quality folks are considering using them. Several of these folks post frequently on BP, but a local company is Gossett Jones. They were voted the customer homebuilder of the year in Austin a few years back
- Responsiveness to investor inquires both on the site's FAQ and via email was great
- A 1031 exchange investor had a tight window to meet to identify our project as a possible candidate for investment and Richard Zahm stepped in to answer some technical questions very quickly.....as in the same hour I asked
- Group text messages with their founders, etc. helped to make sure we were aligned and utilizing technology to make the raise successful
- My new beta iFunding app on my Android phone gave me real-time updates on how the raise was progressing
- They're implementing push notifications to my phone via text message when new money comes in based on my request for this feature
I could go on and on and on. The new staff they have added has really helped a great deal and I will be doing my first debt raise with them this coming week on our 1124 Linden project. If you're considering investing or raising money for your projects you should check them out. I really think their services align quite well with what many BP folks are seeking.
That's great to hear @Bryan Hancock
I hope you will consider sharing with BP the results of some of your crowdfunded projects after the sale...
While I am very new to this arena, how do the rates, fees and other assorted costs compare to traditional hard money lending?
On a side note thanks for being so active here @Bryan Hancock sharing your information with all.
Rates, fees, costs, etc. depend largely on the type of raise. I have only done equity raises and there is overhead associated with doing them, but there is also a lot of value in having a partner to help herd the investor cats and pull together all of the paperwork. There is a real cost to all of this effort and work.
For debt I think that you can find less expensive capital online for sure. For equity I think you can do the same, but it does come with more moving parts and overhead. I can easily send a group text message to fund my deals, but that doesn't allow me to find new investors and grow my subscriber base over time. So there is a bit of a tradeoff here. Net net I like doing business via the crowd better if I have an adequate amount of time to raise the money this way. Many of the portals are pre-funding deals and plan to crowdfund them back out to eliminate the timing constraints. Series A rounds are being used for this purpose.
@Bryan Hancock Can you give some examples of less expensive debt capital online that you mentioned?
@Bryan Hancock any update on this project? The last I heard it should be on the market now?
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